Rocky Mountain Helicopter's aeromedical division will continue to call Provo "home sweet home" after all.
As the 1991 Legislative session wound to a conclusion late Wednesday, the Utah House and Senate passed HB43, which will allow the firm to claim sales-tax exemptions on parts and equipment installed in its aircraft.Previously, the law allowed exemptions only for parts and equipment installed in aircraft used primarily for scheduled interstate commerce. Rocky Mountain Helicopter Inc. doesn't have a fixed flight schedule for its aircraft.
Rocky Mountain Helicopter equips helicopters for air ambulance service. It provides helicopters, pilots and aircraft maintenance on a contractual basis to 42 hospitals in 31 states. The company has annual sales of about $70 million.
The Utah State Tax Commission recently informed the company that it would have to pay sales tax on parts and equipment used to build and repair its aircraft. Company President James B. Burr estimated the tax assessment would cost between $300,000 and $400,000 a year.
Rocky Mountain Helicopter officials said they would relocate the company's medical division to another part of the country if the exemption was not broadened to include it. That would have meant the loss of 100 jobs, an annual payroll of $8 million to $10 million and approximately $1 million in other tax revenues.